• Bernstein expects total crypto revenue to grow from around $25 billion in 2023 to about $400 billion by 2033.
• Of the estimated $400 billion revenue pool, Bernstein says that “decentralized blockchain-driven revenue” will account for nearly half of the total revenue pool from only 15% today.
• Consumer and finance applications are expected to account for about 75% of on-chain revenue from around 40% last year.
According to a research report released by Bernstein on Monday, the crypto industry is set for a decade-long “golden age” of innovation, with total crypto revenue estimated to jump sixteenfold in the next ten years. The report states that total crypto revenue is expected to climb from around $25 billion in 2023 to approximately $400 billion by 2033.
In terms of the revenue pool, the report suggests that a large percentage of it will be derived from decentralized blockchain-driven revenue. This is expected to account for nearly half of the total revenue pool, up from only 15% today. Consumer and finance applications are expected to make up about 75% of on-chain revenue, significantly more than the 40% it represented last year.
The report further states that on-chain revenue is anticipated to inflect from less than around $4 billion today to close to almost $200 billion in the next ten years, driven by “innovation in blockchain scalability and application growth across financial services and consumer tech segments.” This includes decentralized exchanges (DEX), lending, and structured/tokenized products, which are expected to be the lead drivers of on-chain financial applications.
The report concludes that this year will lay the foundations for a decade-long “golden age” of crypto innovation, as crypto pivots from a fat infrastructure thesis to a fat application thesis. If the report’s estimates are correct, it could mean that the crypto industry is set to undergo a massive transformation in the near future.